ChatGPT has recently introduced advertisements, and Google is not dismissing the possibility of including ads in the Gemini app.
Gemini might not remain free of advertisements in the era of ChatGPT ads.
OpenAI has recently begun testing advertisements within ChatGPT, and AI companies are exploring the feasibility of incorporating ads into an AI chatbot without frustrating users. Now, Google has indicated that Gemini may not escape this advertising model indefinitely.
During Alphabet's Q1 2026 earnings call, Google’s Chief Business Officer, Philipp Schindler, was directly asked about the presence of ads in the Gemini app. He gave a cautious response, mentioning that Google is currently concentrating on the free tier, subscription options, and AI initiatives, while its priority is to monetize AI Mode in Search first.
Will ads actually be introduced in the Gemini app?
While Schindler did not disclose any current plans regarding ads, he suggested that if Google identifies an effective ad format for AI Mode, a similar approach could eventually be applied to the Gemini app. He also noted that advertisements have previously assisted Google in scaling products to billions of users, provided they are relevant and presented at appropriate times. This argument could be used later if ads are introduced in Gemini, as they can help maintain a free product for a wide user base. Google emphasized that it is not hurrying into this decision.
What is prompting AI companies to consider ads now?
The shift towards advertisements is primarily driven by cost concerns. AI chatbots require significant computing resources each time they generate a response, particularly with hundreds of millions of free users. While subscriptions can contribute, they may not suffice on their own. Ads present another avenue for companies to fund free access without restricting major AI features to paid plans. Although users may not appreciate this trade-off, it clarifies why OpenAI is experimenting with ads and why Google is leaving the door open for Gemini to follow suit.
Why is Google proceeding cautiously?
Google's measured approach is understandable, especially since OpenAI is still grappling with the challenges of incorporating ads into chatbots. A recent report indicated that tracking ad performance in an AI chatbot might be more complex than in traditional Search. For example, a query like “best laptop under $1,000” demonstrates clear intent to buy. However, in AI chatbots, the decision-making process may involve comparisons, follow-up questions, and changes in budget, complicating the ability for advertisers to determine whether an ad effectively led to a click or purchase, or if it merely appeared in the chat without influencing the decision.
Additionally, Google has several reasons to be cautious. Search continues to expand, and AI appears to be aiding that growth. Schindler noted that users are making more queries than ever before. He highlighted the integration of AI through AI Overviews, AI Mode, Lens, Circle to Search, Search Live, and AI-powered search ads as ways Google is incorporating AI into Search while still preserving its core business.
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ChatGPT has recently introduced advertisements, and Google is not dismissing the possibility of including ads in the Gemini app.
Advertisements have begun to appear within ChatGPT, and Google is already making space for Gemini to follow suit. The era of chatbot advertisements could be nearer than users anticipated.
